A company incurs the following expenses to produce 1,000 units of an article:
|
|
|
|
Direct Materials |
30,000 |
|
Direct Labour |
15,000 |
|
Power [20% fixed] |
10,000 |
|
Repairs & Maintenance [15% fixed] |
8,000 |
|
Depreciation (40% variable) |
6,000 |
|
Administrative Expenses [100% fixed] |
12,000 |
Prepare a Flexible Budget showing the individual expenses of production levels at 1,500 units and 2,000 units.